The long-awaited Innovator Route is now open for applicants with experienced business track records who are aiming to establish a business in the UK. This route is open for applicants who are able to demonstrate that they have a new business idea, which will have been assessed by a third party (an ‘endorsing body’) against 3 main criteria: Innovation; Viability; and Scalability. Applicants must also show the availability of investment funds of at least £50,000. This route leads to settlement in the UK after 3 years if all the conditions set out below are met.

A separate Start-Up Route has also opened for applicants with less business experience who can prove a potential to successfully establish and run a new business in the UK, and can show that they are actively developing the necessary skills to do so. The applicant’s business idea will also be assessed by an endorsing body for the same criteria as the Innovator category, however they are not required to show the availability of any funds for investment. This route is open for early-stage entrepreneurs and does not lead to settlement and is limited to a maximum of 2 years, but the applicant is able to switch into the Innovator category after the 2 years.  

The below information will be based on the Innovator Route and the requirements that must be met to for Entry Clearance and ILR.

Entry Clearance

To be eligible for Entry Clearance, you must satisfy the following 4 main requirements:

• Endorsement from an Endorsing Body
• Available Investment Funds
• English Language
• Maintenance Funds
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Settlement

In order to qualify for settlement, you must show that:

• Your last grant of leave was in the Innovator category;
• You have sufficient knowledge of English;
• You have sufficient knowledge of Life in the UK;
• You are not in the UK in breach of immigration laws;
• You do not fall for refusal under the general grounds for refusal;
• You meet the continuous residence requirement by having spent at least 3 years in the Innovator category inside the UK (if you previously spent time in the Start-Up Route prior to the Innovator Route, this time will not be counted towards the 3-year requirement). Absences from the UK will not break the continuity period provided they total 180 days or less in any consecutive 12 months.
• Endorsement: endorsement by an endorsing body is required both at the initial application stage and again when applying for settlement (however this does not need to be the same endorsing body as in your previous leave).
• Progress and Achievement: By the next endorsement you will need to demonstrate enough progress and achievement in your business to meet the settlement criteria.
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To demonstrate your progress, you must show that:

• You have shown significant achievements, judged against the business plan assessed in your previous endorsement;
• You have registered your business with Companies House and enlisted as a director or member;
• Your business is active and trading;
• Your business appears to be sustainable for at least the next 12 months, based on its assets and expected income, weighed against its current and planned expenses; and
• You have demonstrated an active key role in the day-to-day management and development of the business.

To demonstrate your achievement, you must show at least 2 of the following:

• At least £50,000 has been invested into the business, and actively spent furthering the business plan assessed in the applicant’s previous endorsement;
• The business has created the equivalent of at least 10 full-time jobs for resident workers;
• The business has created the equivalent of at least 5 full-time jobs for resident workers, each with an average salary of at least £25,000 per year (gross, excluding expenses);
• The number of the business’ customers has at least doubled within the most recent 3 years and is currently higher than the mean number of customers for other UK businesses offering comparable main products or services;
• The business has engaged in significant research and development activity and has applied for intellectual property protection in the UK;
• The business has generated a minimum annual gross revenue of £1 million in the last full year covered by its accounts;
• The business is generating a minimum annual gross revenue of £500,000 in the last full year covered by its accounts, with at least £100,000 from exporting overseas.

If two or more applicants have been endorsed for the same business, just as they must each show a separate £50,000 and be endorsed in their own right, each applicant must also meet their own 2 success criteria from the list above. The same criteria may be relied upon twice, as long as it has been doubled to reach 2 individual success criteria (e.g. at least £100,000 has been invested into the business, and the business has created the equivalent of at least 20 full-time jobs for resident workers).

Job creation: 

Job creation is not mandatory if at least two other criteria can be met. If you are relying on this, your job creation must meet the below requirements:

Each job must:

• Have existed for at least 12 months;
• Involve at least 30 hours of paid work per week. (2 part-time jobs may be combined to make 1 job, as long as each job has existed for at least 12 months);
• Comply with all relevant UK legislation (National Minimum Wage, Working Time Regulations 1998).

A ‘job’ means a post filled, and does not refer to the number of employees. A single job may be filled for over 12 months by different employees at different times and count as one job having existed for at least 12 months.

Extension – Alternative

If you do not meet the above criteria to qualify for settlement, you may apply for an extension of a further 3 years. You must be endorsed again by an endorsing body.

To qualify, you must demonstrate enough progress for the same business as your initial entry, by showing that:

• You have shown significant achievements, judged against the business plan assessed in your previous endorsement;
• You have registered your business with Companies House and enlisted as a director or member;
• Your business is active and trading;
• Your business appears to be sustainable for at least the next 12 months, based on its assets and expected income, weighed against its current and planned expenses; and
• You have demonstrated an active key role in the day-to-day management and development of the business.

It should be noted that the Home Office makes a distinction between applicants relying on a “new business” or the “same business”. This means that if you are already on the Innovator route, you may decide after 3 years to apply for an extension using a different business, in which case you must satisfy the same requirements (endorsement letter, investment fund) as an initial applicant, and will be granted 3 years. To apply for ILR, you must be relying on the same business as your previous leave.

When applying for settlement or an extension, you are permitted to be endorsed by a different body than your previous one, i.e. if your previous one is no longer an endorsing body.

If you genuinely believe that you would be able to meet the requirements to apply as an Innovator, you are welcome to contact us to discuss your individual case in greater detail to see how we can assist you further.

Disclaimer:

Please note that the above summary and explanation is for information purposes only and subject to change in line with the immigration rules and policies. This summary does not in any way constitute legal advice as every application is unique.